Davuluri brushed it all off in her first news conference after winning the crown.

"I'm so happy this organization has embraced diversity," she said, according to AP. "I'm thankful there are children watching at home who can finally relate to a new Miss America."

As for the negativty, she said, "I have to rise above that. I always viewed myself as first and foremost American."

Meanwhile, Davuluri, 24, started her reign having to apologize and explain about a different story entirely.

OnGood Morning AmericaMonday, she answered questions about a story that surfaced several days before Sunday night's pageant.

According toPage Six, Davuluri was said to have been heard on tape in July in her hotel room after she was crowned Miss New York as saying that Miss America 2013, New York's Mallory Hagan, was "fat as (expletive)." At the time, she said the remarks were made by "people in my room" and MIss America organizers said there was "no validity" to the report.

"Oh my gosh," said Davuluri on Monday toGMA's Lara Spencer, who co-hosted the show on Sunday. "It was such an unfortunate situation. I never made those comments. I called Mallory and have apologized to her because it was the right thing to do. And we worked it out. She's been an incredible resource throughout this journey."

She noted that she hugged Mallory when the news was announced. "And I'm so thankful to have her be a part of this."

Davuluri also took a minute to say how proud she was of her talent portion of the show. "It's the first time Bollywood has ever been performed on the Miss America stage and it's such an honor for myself, my family and the Indian community, as well."